BUSINESS TECHNOLOGY MEDIA COMPANY
Companies
Sectors

MTN starts trading on Uganda Securities Exchange

Read time 1min 50sec

MTN Uganda will proceed today with the listing of its 22.4 billion ordinary shares on the Uganda Securities Exchange (USE), with trading commencing immediately.

In a statement, the mobile operator says the listing has received the requisite approvals from the Capital Markets Authority in Uganda and the USE.

It follows the successful completion of the largest initial public offering in Uganda’s history, raising a record UGX535 billion from applications for 2.9 billion shares (including incentive shares).

“We are delighted with the successful completion of the offer. It clearly shows the confidence that Ugandans and other investors have in the company, its brand and its strategic intent,” says MTN Uganda chairman Charles Mbire.

“We commend all the regulators for their support in our work to become a USE-listed company and to comply in a timely manner with the listing provisions of the national telecommunications operators’ licence,” he adds.

MTN Uganda CEO Wim Vanhelleputte says: “Today marks the conclusion of a remarkable journey which has given over 20 000 Ugandans the opportunity to become owners of MTN Uganda.

“We are particularly proud of our digital m-IPO collaboration with the USE, an African first. More than 93% of the applications were made via the m-IPO platform, with the majority of these investors new market participants,” he adds.

The listing reduces the ownership of MTN Group in MTN Uganda from 96% to 83.05%, says the firm.

It is in line with MTN Group’s strategic priority to create shared value, partly through ensuring broad-based ownership in all operating subsidiaries, it notes, adding that this aligns with the Ugandan Communications Commission’s new licensing requirement for broad-based ownership by Ugandans, with a compliance deadline of mid-2022.

“With this listing, MTN Uganda becomes the Ugandan stock with the largest market capitalisation on the USE,” says MTN Group president and CEO Ralph Mupita.

“We are very encouraged to have helped facilitate the broadest possible shareholder base in Uganda, with regional participation and in so doing, further developing the equity capital markets in this country.”

See also